manpower planning ch 56

7/29/2019 Manpower Planning Ch 56

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Manpower Planning


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MANPOWER PLANNING IN ORGANISATION

Introduction:

Human resource planning means deciding the numberand type of the human resource required for each job,unit and the total company for a particular future datein order to carry-out organizational activities.

Personnel management is productive exploitation ofmanpower resources. This is also termed asManpower Management'.

Manpower Management is choosing the proper type ofpeople as and when required. It also takes into accountthe upgrading in existing people.

Manpower Management starts with manpowerplanning.


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Manpower Planning

Manpower Planning which is also called as Human

Resource Planning consists of putting right number ofpeople, right kind of people at the right place, righttime, doing the right things for which they are suitedfor the achievement of goals of the organization.

Human Resource Planning has got an important placein the arena of industrialization. Human ResourcePlanning has to be a systems approach and is carriedout in a set procedure.

The procedure is as follows:

Analysing the current manpower inventory

Making future manpower forecasts

Developing employment programmes

Design training programmes


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Objectives of Human Resource Planning

(a) To recruit and retain the human resource of required quality andquantity

(b) To foresee the employee turnover and make the arrangements

for minimizing turnover and filling up of consequent vacancies

(c) To meet the needs of the programes of expansion, diversification (d) To foresee the impact of technology on work, existing employees

and future human resource requirements

(e) To improve the standards, skills, knowledge, ability, discipline

etc., (f) To minimize imbalances caused due to non-availability of human

resources of the right kind, right number in right time and right place,

(g) To make best use of its human resources and

(h) To estimate the cost of human resources


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Steps in Manpower Planning1. Analyzing the current manpower inventory- Before a

manager makes forecast of future manpower, the currentmanpower status has to be analyzed. For this the following

things have to be noted-

Type of organization

Number of departments

Number and quantity of such departments

Employees in these work units

Once these factors are registered by a manager, he goes for

the future forecasting.


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2. Making future manpower forecasts- Once the factors affecting the

future manpower forecasts are known, planning can be done for the

future manpower requirements in several work units.

The Manpower forecasting techniques commonly employed by the

organizations are as follows:

Expert Forecasts: This includes informal decisions, formal expert

surveys and Delphi technique.

Trend Analysis: Manpower needs can be projected through

extrapolation (projecting past trends), indexation (using base year as

basis), and statistical analysis (central tendency measure).

Work Load Analysis: It is dependent upon the nature of work load in

a department, in a branch or in a division.

Work Force Analysis: Whenever production and time period has to

be analysed, due allowances have to be made for getting net

manpower requirements.

Steps in Manpower Planning


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Steps in Manpower Planning

Other methods: Several Mathematical models, with the aid ofcomputers are used to forecast manpower needs, like budget andplanning analysis, regression, new venture analysis.

3. Developing employment programmes- Once the currentinventory is compared with future forecasts, the employment

programmes can be framed and developed accordingly, whichwill include recruitment, selection procedures and placementplans.

4. Design training programmes- These will be based uponextent of diversification, expansion plans, developmentprogrammes,etc. Training programmes depend upon theextent of improvement in technology and advancement totake place. It is also done to improve upon the skills,

capabilities, knowledge of the workers.


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Importance of Manpower Planning

Key to managerial functions- The four managerialfunctions, i.e., planning, organizing, directing andcontrolling are based upon the manpower. Humanresources help in the implementation of all thesemanagerial activities. Therefore, staffing becomes a keyto all managerial functions.

Efficient utilization- Efficient management ofpersonnels becomes an important function in theindustrialization world of today. Setting of large scaleenterprises require management of large scalemanpower. It can be effectively done through staffingfunction.


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Motivation- Staffing function not only includes putting right menon right job, but it also comprises of motivational programmes,i.e., incentive plans to be framed for further participation andemployment of employees in a concern. Therefore, all types of

incentive plans becomes an integral part of staffing function.

Better human relations- A concern can stabilize itself if humanrelations develop and are strong. Human relations become strongtrough effective control, clear communication, effective

supervision and leadership in a concern. Staffing function alsolooks after training and development of the work force whichleads to co-operation and better human relations.

Higher productivity- Productivity level increases when resourcesare utilized in best possible manner. higher productivity is a resultof minimum wastage of time, money, efforts and energies. This ispossible through the staffing and it's related activities (Performance appraisal, training and development, remuneration


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Need of Manpower Planning

Manpower Planning is a two-phased process becausemanpower planning not only analyses the current human

resources but also makes manpower forecasts and thereby

draw employment programes. Manpower Planning is

advantageous to firm in following manner: Shortages and surpluses can be identified so that quick

action can be taken wherever required.

All the recruitment and selection programes are based on

manpower planning.

It also helps to reduce the labor cost as excess staff can be

identified and thereby overstaffing can be avoided.


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It also helps to identify the available talents in a

concern and accordingly training programmes can

be chalked out to develop those talents.

It helps in growth and diversification of business.

Through manpower planning, human resources

can be readily available and they can be utilized in

best manner. It helps the organization to realize the importance

of manpower management which ultimately helps

in the stability of a concern.

Need of Manpower Planning


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Advantages of Manpower Planning: Manpower planning ensures optimum use of available

human resources.

1. It is useful both for organization and nation.2. It generates facilities to educate people in theorganization.3. It brings about fast economic developments.

4. It boosts the geographical mobility of labor.5. It provides smooth working even after expansion ofthe organization.6. It opens possibility for workers for futurepromotions, thus providing incentive.7. It creates healthy atmosphere of encouragement andmotivation in the organization.8. Training becomes effective.9. It provides help for career development of the

employees.


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Sales Organisation

A company where everyone recognizesthe importance of sales and consciously

supports the sales process, the sales

representatives have the full support ofthe organization and service

representatives to deliver goods and

services in a manner that exceed the

customers' expectations.


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FIVE AREASOF A

COMPANY'SACTIVITIES

General

Administration

Management

Function

HumanResources

Management

Function

FinancialManagemen

tFunction

OperationsManagemen

tFunction

MarketingAnd Sales

Management

Function


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CONNECTION BETWEEN MARKETING

AND SALES MANAGEMENT FUNCTIONS

The Sales Management

Function represents an integral part of the

marketing management function. The salesmanager, therefore, is responsible for

developing an effective Sales

Organization in order to implement allaspects of the company's marketing plan.


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REASONS FOR A FLEXIBLE SALES

ORGANIZATIONAL STRUCTURE

1.To introduce new products or services into the

market.

2.To develop new sales territories.

3.To meet constantly changing customers' needs.

4.To establish another sales branch.


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STEPS IN THE SALES ORGANIZATION

DEVELOPMENT PROCESS

Step 1: Determine The Tasks That Must Be Performed ToImplement The Sales Plan, e.g. Forecasting, Prospecting,Selling, Order-Taking.

Step 2: Classify The Tasks And Group Them Into RelatedSets Of Activities On The Basis Of Product, Customer, OrSales Territory Requirements.

Step 3: Assign A Set Of Activities To An Individual PositionOr Positions.

Step 4: Establish Supervision And Reporting Relationships

Between Positions.


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FACTORS IN A SALES ORGANIZATION DEVELOPMENT PROCESS

THE UNITY OF COMMAND PRINCIPLE

One important consideration of the sales organization

development process is the Unity Of Command

Principle. This principle suggests that each employee should

report to only one person within the organization.

This is a general principle that is particularly useful in the

sales management environment. When employees report to

more than one individual, they may be given contradictinginstructions that can, in turn, cause ineffective performance.

It is essential, therefore, to prevent such a condition to avoid

confusion among sales employees.


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SPAN OF CONTROL

Another issue that should be considered by the

sales manager relates to the Span Of Control,or the number of subordinates that can be

effectively supervised by one manager.

The importance of this issue depends upon thesize of the sales organization and is particularly

critical for larger companies.

Small and medium-sized organizations usually

employ a moderate number of sales people and

seldom experience problems caused by an

excessive span of control.


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CENTRALIZATION OR DECENTRALIZATION OF CONTROL

The sales manager should also consider the issue ofCentralization Or

Decentralization Of Control over the company's sales activities.

A small organization normally starts its operations from one office, and

management exercises centralized control over sales force activities. When

the organization grows and develops business relations with customers in

different geographic locations, however, it may be useful to decentralize

control over the sales force activities. This may require a branch to beopened in a suitable geographic location in order to ensure effective service

of local customers.

Decentralization of sales activities helps minimize the travel time and

expenses incurred by sales people and maximize the quality of sales serviceprovided by customers.

ORGANIZATIONAL SPECIALIZATION

Finally, important consideration should be given by the sales manager tothe issue ofOrganizational Specialization.


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Geographic

SpecializationProduct

SpecializationCustomer

SpecializationFunctional

Specialization

Types of Sales Org.


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GEOGRAPHICALLY-SPECIALIZED SALES ORGANIZATION Geographic Specialization is particularly suitable for an organization that

operates in widespread geographic markets.

In this type of organization, each sales person is assigned to sell all productsto all customers within a specified geographic location. A typical structureof a Geographically-Specialized Sales Organization is illustrated below.

The main advantages and disadvantages of the geographically-specializedorganization structure are outlined below.

GEOGRAPHICALLY-SPECIALIZED SALES ORGANIZATION

Advantages

One of the advantages of this structure is that it stimulates development ofstrong ties between sales people and their customers. In addition, traveltime and selling costs can be substantially reduced because each salesperson covers a limited sales territory.

Disadvantages

One of the disadvantages of this structure is that a particular sales personcan handle only a limited number of uncomplicated products or productlines.


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PRODUCT-SPECIALIZED SALES ORGANIZATION

Product Specialization is generally used by industrialorganizations that offer various lines of products to themarket.

This type of structure is effective in the distribution ofdifferent highly-technical products. In this type oforganization, each sales person is trained to handle aparticular product or product line. Thus, the number ofsales people depends upon the variety of productshandled by the organization.

A typical structure of a Product-Specialized Sales

Organization is illustrated below.


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Development of Sales Organisation At the core of each successful sales organization is a plan. This

sales and marketing plan includes goals, objectives,responsibilities, timelines, evaluation criteria, and budgeting. It

addresses areas such as:

Sales objectives: These should be tied to a timeframe, and be

measurable and realistic. Territories: Typically dividing your market into territories is

done geographically taking into consideration account

concentrations. As territories are developed, they can be divided

further. Customer evaluation:Not all customers are created equal. I

suggest firms examine potential customers with a high degree of

scrutiny paying attention to financial stability, growth, & loyalty.

D l t f S l O i ti


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Sales organization development & compensation:

Take the time to thoroughly think this through. Willthere be territory managers? Will sales people be

compensated on a commission basis?

Sales support: Be sure to commit resources tosupporting your sales organization.

Training: Develop of training plan that will lead your

team to success.

Sales coordination: Who will be responsible and have

the authority for the sales function? There should be a

central person to coordinate efforts between outside

and internal activities to avoid confusion.

Development of Sales Organisation


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Development of Sales Organisation Customer support: Procedures and programs should be in

place to support inquiries, quotes, order placement/tracking,

and shipping. There are a variety of off-the-shelf contactmanagement programs that allow you to quickly andefficiently track customer and sales related activities. ACT andGoldmine are two that are widely used. More recently,

Internet based platforms have been developed tailored to thespecial needs of specific industries. Check with your industrytrade association to see what's available.

Sale materials: Review the sales materials you have on hand

and determine what materials need to be further developed.This includes a website as well as field literature. Materialsand your website don't have to be slick and expensive, butthey need to get the message across to your customers andprospects. All information should have a purpose, be concise,and clearly presented.


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Recruitment n Selection

Recruitment is the process of collection ofResumes through advertisements for certain post.

Selection is the process of selecting the suitable

person to the suitable job based on his

performance

in written test, personal interview, assessing jobknowledge on the basis of his experience.


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Recruitment is the process of identifying that theorganization needs to employ someone up to the pointat which application forms for the post have arrived at

the organization. Selection then consists of the processes involved in

choosing from applicants a suitable candidate to fill apost.

Training consists of a range of processes involved inmaking sure that job holders have the right skills,knowledge and attitudes required to help the

organization to achieve its objectives. Recruiting individuals to fill particular posts within a

business can be done either internally by recruitmentwithin the firm, or externally by recruiting people from

outside.


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The advantages of internal recruitment are that:1. Considerable savings can be made. Individuals withinside knowledge of how a business operates will need

shorter periods of training and time for 'fitting in'.

2. The organisation is unlikely to be greatly 'disrupted'by someone who is used to working with others in theorganisation.

3. Internal promotion acts as an incentive to all staff towork harder within the organisation.

4. From the firm's point of view, the strengths andweaknesses of an insider will have been assessed.There is always a risk attached to employing anoutsider who may only be a success 'on paper'.


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The disadvantages of recruiting from within are

that:

1. You will have to replace the person who has beenpromoted

2. An insider may be less likely to make the essentialcriticisms required to get the company working

more effectively

3. Promotion of one person in a company may

upset someone else.


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External recruitment

External recruitment makes it possible to draw upon a wider

range of talent, and provides the opportunity to bring newexperience and ideas in to the business.

Disadvantages are that it is more costly and the company mayend up with someone who proves to be less effective inpractice than they did on paper and in the interview situation.

There are a number of stages, which can be used to define andset out the nature of particular jobs for recruitment purposes:Job analysis is the process of examining jobs in order toidentify the key requirements of each job.

A number of important questions need to be explored:the title of the jobto whom the employee is responsiblefor whom the employee is responsiblea simple description of the role and duties of the employee

within the organization.

J b l i i d i d


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Job analysis is used in order to:

1. Choose employees either from the ranks of your

existing staff or from the recruitment of new staff. 2. Set out the training requirements of a particular

job.

3. Provide information which will help in decisionmaking about the type of equipment and materialsto be employed with the job.

4. Identify and profile the experiences of employees

in their work tasks (information can be used asevidence for staff development & promotion).

5. Identify areas of risk and danger at work.

6. Help in setting rates of pay for job tasks.


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Job Analysis

Job analysis can be carried out by direct

observation of employees at work, by finding out

information from interviewing job holders, or by

referring to documents such as training manuals.

Information can be gleaned directly from theperson carrying out a task and/or from their

supervisory staff.

Some large organizations specifically employ 'jobanalysts'. In most companies, however, job

analysis is expected to be part of the general

skills of a training or personnel officer.


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Job description

A job description will set out how a particular

employee will fit into the organisation. It will therefore need to set out:

the title of the jobto whom the employee is responsiblefor whom the employee is responsiblea simple description of the role and duties of theemployee within the organisation.

A job description could be used as a job indicator forapplicants for a job. Alternatively, it could be used as aguideline for an employee and/or his or her linemanager as to his or her role and responsibility within

the organisation.

J b ifi ti


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Job specificationA job specification goes beyond a mere description - in addition, it highlights

the mental and physical attributes required of the job holder.

For example, a job specification for a trainee manager's post in a retail store

included the following:

'Managers at all levels would be expected to show responsibility. The company

is looking for people who are tough and talented. They should have a flair for

business, know how to sell, and to work in a team.

Job analysis, description, and specification can provide useful information to a

business in addition to serving as recruitment instruments.

For example, staff appraisal is a means of monitoring staff performance and is

a feature of promotion in modern companies. In some companies, for

example, employees and their immediate line managers discuss personal goals

and targets for the coming time period (e.g. the next six months). The appraisal

will then involve a review of performance during the previous six months, and

setting new targets.


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Job details can serve as a useful basis for establishing

dialogue and targets. Job descriptions can be used as

reference points for arbitrating in disputes as to 'who

does what' in a business. Selection involves procedures

to identify the most appropriate candidates to fill posts.

An effective selection procedure will therefore take into

consideration the following:keeping the costs of selection down

making sure that the skills and qualities being sought

have been identified,developing a process for identifying them in candidates

making sure that the candidates selected, will want the

job, and will stay with the company.

K i h f l i d ill i l h f


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Keeping the costs of selection down will involve such factorsas holding the interviews in a location, which is accessible tothe interviewing panel, and to those being interviewed. Theinterviewing panel must have available to them all the

necessary documentations, such as application formsavailable to study before the interviews take place. A short listmust be made up of suitable candidates, so that theinterviews do not have to take place a second time, with newjob advertisements being placed.The skills required should have been identified through theprocess of job analysis, description and specification.

It is important then to identify ways of testing whethercandidates meet these requirements. Testing this out may

involve:interviewing candidatesasking them to get involved in simulated work scenariosasking them to provide samples of previous workgetting them to fill in personality and intelligence tests

giving them real work simulations to test their abilities.

d i d i i


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Induction and Training New workers in a firm are usually given an induction

programme in which they meet other workers and are shownthe skills they must learn. Generally, the first few days at workwill simply involve observation, with an experienced workershowing the 'new hand' the ropes.

Many large firms will have a detailed training scheme, whichis done on an 'in-house' basis. This is particularly true oflarger public companies such as banks and insurancecompanies. In conjunction with this, staff may be encouragedto attend college courses to learn new skills and get new

qualifications. Training thus takes place in the following ways:

1. On the job - learning skills through experience at work2. Off the job - learning through attending courses.

P ti ithi fi d d i i lifi ti t d


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Promotion within a firm depends on acquiring qualifications to do a

more advanced job. In accountancy for example, trainee accountants

will be expected to pass exams set by the Association of Chartered

Certified Accountants (ACCA). At the same time, a candidate for

promotion must show a flair for the job. It is the responsibility of the

training department within a business to make sure that staff with the

right skills are coming up through the firm or being recruited from

outside.

The ACCA has 300,000 members and students throughout the world. Itis a professional body setting standards for the accountancy profession.

To be properly qualified, accountants must have passed examinations

that make them eligible for membership of one or more professional

accounting bodies, such as ACCA.

Typically accountants will improve their knowledge and experience by

taking courses run and organized by ACCA during their professional

training enabling them to develop and enhance their careers.

Induction is the process of introducing new employees to an

organization and to their work responsibilities in that organization.


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Training is for :

Maintain or improve Current job performance

Development is for:

Develop skills necessary for future activity

T f T i i d D l


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Types of Training and Development(I say development because Mentoring is not a training type in its strictest

sense )

Classroom training The traditional type of training with lecture as the

chief method of imparting learning.

Vestibule training Training in a simulated setting which lets the trainee

acquire the skills and knowledge with a allowance for making mistakes.

Also called laboratory training. On the Job training Real time training where a person learns from

following instructions or trial and error. Examples of on job training are

observation assignment (understudy), apprenticeship, internship, job

rotation etc which are carried out under observation of a trainer/expert. Mentoring Its an in-house coaching method where no trainer is

employed but a successful and competent employee is appointed as a

mentor to the mentee, who coaches the mentee over a period of time

to become successful. Mentoring is an informal relationship between 2

people who are not related as a boss and subordinate.

Types of Training and Development


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On-the-job training

With on the job training, employees receive training whilstremaining in the workplace.The main methods of one-the-job training include:

Demonstration / instruction - showing the trainee how to do thejob

Coaching - a more intensive method of training that involves aclose working relationship between an experienced employee andthe trainee

Job rotation - where the trainee is given several jobs in succession,to gain experience of a wide range of activities (e.g. a graduate

management trainee might spend periods in several differentdepartments)

Projects - employees join a project team - which gives themexposure to other parts of the business and allow them to takepart in new activities. Most successful project teams are "multi-

disciplinary"


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Advantages Disadvantages

Generally most cost-effective

Employees are actually

productive

Opportunity to learn whilst

doing

Training alongside real

colleagues

Quality depends on ability oftrainer and time available

Bad habits might be passed

on

Learning environment may

not be conducive

Potential disruption to

production

T f T i i d D l t


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Off-the-job training

This occurs when employees are taken away from their placeof work to be trained.

Common methods of off-the-job training include:

Day release (employee takes time off work to attend a localcollege or training centre)

Distance learning / evening classes

Block release courses - which may involve several weeks at alocal college

Sandwich courses - where the employee spends a longerperiod of time at college (e.g. six months) before returning towork

Sponsored courses in higher education

Self-study, computer-based training


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Advantages Disadvantages

A wider range of skills orqualifications can be obtained

Can learn from outside

specialists or experts

Employees can be more

confident when starting job

More expensive e.g. transportand accommodation

Lost working time and potential

output from employee

New employees may still need

some induction training

Employees now have new

skills/qualifications and may

leave for better jobs


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Assuming training is effective then:

Employees feel more loyal to the business

Shows that business is taking an interest in its

workers

Employees should benefit from better

promotion opportunities

Employees to achieve more at work andperhaps gaining financially from this

(depending on the remuneration structure)

manpower planning ch 56

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